Keith Higgins Discusses if Musk’s Tesla Tweet Violates SEC Rules Live on Closing Bell
On August 14, securities and governance practice chair Keith Higgins discussed whether Elon Musk’s Tesla go-private tweet violated SEC rules on CNBC’s “Closing Bell.” Mr. Higgins examines timing, what “funding secured” means and what the SEC believes a reasonable investor would have understood "funding secured" to have meant when deciding if he violated the law.
“The SEC could fine him and they could issue a cease and desist order that is the most likely scenario. Mr. Musk will be subject to private plaintiff suits, which I understand have already started, if in fact saying funding secured was materially misleading,” Mr. Higgins stated on potential punishments if a violation is found.